Zhongguan Village Independent IPR Financing Collective Capital Trust Program I was initiated on April 30, 2011. It is the first of its kind in China.
The program was co-initiated by COFCO Trust, China Technology Exchange, Vestone Capital and Fuhigh Financial Services. The program issued RMB 20 million of loans to AIRSYS Beijing and another three companies which pledged their IPRs.
The program makes full use of the trust system and make innovations in product design and operation model. It invited Zhongguan Village Management Committee, China Technology Exchange, Vestone Capital to functioning respectively in providing finance discount, IPR value exploration and realization, and after-the-poor investment. They coordinate and share risks. The trust delamination meets different needs of different market entities in risks and earnings. The program invited venture capital institutions as after-the-poor beneficiary responsible for guarantee to manage risks. The combination of creditor's rights and equity provides a sustainably profitable business model for those participating in the program.
This is COFCO Trust's exploration in the model of financing for medium- and small-sized hi-tech companies. On this basis, COFCO Trust will initiate programs combining creditor's rights and equity investment.
